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In-Depth Information
The Rocky Road to Stability
Portugal was soon committed to a blend of socialism and democracy, with a powerful pres-
ident, an elected assembly and a Council of the Revolution to control the armed forces.
Mário Soares' minority government soon faltered, prompting a series of attempts at gov-
ernment by coalitions and nonparty candidates, including Portugal's first female prime
minister, Maria de Lourdes Pintasilgo. In the 1980 parliamentary elections a new political
force took the reins - the conservative Aliança Democrática (AD; Democratic Alliance),
led by Francisco de Sá Carneiro.
After Carneiro's almost immediate (and suspicious) death in a plane crash, Francisco
Pinto Balsemão stepped into his shoes. He implemented plans to join the European Com-
munity (EC).
It was partly to keep the EC and the International Monetary Fund (IMF) happy that a
new coalition government under Soares and Balsemão implemented a strict programme of
economic modernisation. Not surprisingly, the belt-tightening wasn't popular. The loudest
critics were Soares' right-wing partners in the Partido Social Democrata (PSD; Social
Democrat Party), led by the dynamic Aníbal Cavaco Silva. Communist trade unions organ-
ised strikes, and the appearance of urban terrorism by the radical left-wing Forças Pop-
ulares de 25 Abril (FP-25) deepened unrest.
In 1986, after nine years of negotiations, Portugal joined the EC. Flush with new funds,
it raced ahead of its neighbours with unprecedented economic growth. The new cash flow
also gave Prime Minister Cavaco Silva the power to push ahead with radical economic re-
forms. These included labour law reforms that left many workers disenchanted; the 1980s
were crippled by strikes - including one involving 1.5 million workers - though all to no
avail. The controversial legislation was eventually passed.
Unfortunately, however, the economic growth wouldn't last. In 1992 EC trade barriers
fell and Portugal suddenly faced new competition. Fortunes dwindled as recession set in,
and disillusionment grew as Europe's single market revealed the backwardness of Por-
tugal's agricultural sector.
The law allowing all Portuguese women to vote was only established in 1975.
Strikes, crippling corruption charges and student demonstrations over rising fees only
undermined the PSD further, leading to Cavaco Silva's resignation in 1995. The general
 
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